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Paying people properly has very little impact on customer prices, see countries who enforce this.
by oxnrtr 5y ago
Paying people properly has very little impact on customer prices, see countries who enforce this.
- tluyben2 5y agoI live(d) only in countries that enforce it and it definitely makes a huge difference in consumer prices. Places that are ran 'by the family' here have their family do all the work for free (usually their kids and the parents running it all); in exchange they get pocket money, a roof over their head and food. But they are very cheap employees. Now compare the food and drink prices to a place with official employees and matching wages. Even at minimum wage (which is the norm here for restaurants and hotels), the difference in consumer price is massive. It is between having a lunch for E5 or E25+.
- chunkyfunky 5y agoI think that is a fair point and anecdotally at least it gels with what I have observed. I've worked in quite a few food service settings when I was younger and the margins (in general of course; Soup du Jour is like 5/600% margin at least) are very thin. However I wonder if this isn't just a symptom of the bigger problem; in order to pay better wages, consumer prices have to be raised because it's the only way to make enough margin to pay the employees BUT the real reason margins are so thin is because you are paying exorbitant rent to some faceless landlord who actually owns the building you operate out of; and it only ever goes up, never down; and your suppliers constantly raise their prices (or lower their quality) because they are in the same boat; and thus all that money that is generated by the tip of the spear (the restaurant, the retail store, the pub) is mostly being pushed back up to....the people who already have all the money...which is why they own all the buildings and rent them out to make more money....and so on. Just a thought :)